ACIT, CHENNAI V. Scientific Publishing Services Pvt. Ltd., CHENNAI

ITA 2489/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86234 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 01-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI .. , ! , ' #$ BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ ITA NO. 2489/MDS/2014 ' % &% / ASSESSMENT YEAR : 2009-10 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(3), CHENNAI - 600 034. V. M/S SCIENTIFIC PUBLISHING SERVICES PVT. LTD., NO.6 & 7, 5 TH STREET, R.K. SALAI, MYLAPORE, CHENNAI - 600 004. PAN : AAACS 6707 R (!(/ APPELLANT) (*+!(/ RESPONDENT) !( , - / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT *+!( , - / RESPONDENT BY : SHRI VIKRAM VIJAYARAGHAVAN, ADVOCATE . , / / DATE OF HEARING : 19.01.2015 01& , / / DATE OF PRONOUNCEMENT : 19.01.2015 / O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING TH E ORDER DATED 30.06.2014 PASSED BY LD CIT(APPEALS)-VI, CHENNAI AN D IT RELATES TO THE ASSESSMENT YEAR 2009-10. THE REVENUE IS AGGRIEVED BY THE DECISION OF 2 I.T.A. NO. 2489/MDS/2014 LD CIT(APPEALS) IN HOLDING THAT THE EXPENSES INCURR ED IN FOREIGN EXCHANGE AND COMMUNICATION CHARGES ARE TO BE DEDUCT ED BOTH FROM EXPORT TURNOVER AND TOTAL TURNOVER FOR COMPUTING DE DUCTION U/S 10B OF THE ACT. 2. A PERUSAL OF THE ORDER OF LD CIT(APPEALS) WOULD SHOW THAT THE FIRST APPELLATE AUTHORITY HAS FOLLOWED THE DECISION RENDERED BY THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF M/S SAK SOFT L TD (2009)(30 SOT 55)(CHENNAI) IN HOLDING SO. THE LD CIT(APPEALS) HA S ALSO NOTICED THAT THE TRIBUNAL HAS DECIDED AN IDENTICAL ISSUE IN FAVO UR OF THE ASSESSEE IN ITS OWN APPEAL RELATING TO AY 2007-08 IN ITA NO.185 4/MDS/2011 DATED 11.5.2012, BY FOLLOWING THE SPECIAL BENCH DECISION REFERRED ABOVE. 3. UNDER THESE SET OF FACTS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD CIT(APPEALS) IN HOLDING THAT THE EXPENSES INCURR ED IN FOREIGN EXCHANGE AND COMMUNICATION CHARGES ARE TO BE DEDUCT ED BOTH FROM EXPORT TURNOVER AND TOTAL TURNOVER FOR COMPUTING DE DUCTION U/S 10B OF THE ACT BY FOLLOWING THE DECISION OF SPECIAL BENCH REFERRED ABOVE. ACCORDINGLY, WE UPHOLD HIS ORDER ON THIS ISSUE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVEN UE IS DISMISSED. 3 I.T.A. NO. 2489/MDS/2014 ORDER PRONOUNCED ON THE 19 TH DAY OF JANUARY, 2015 AT CHENNAI. SD/- SD/- ( ! ) ( .. ) (VIKAS AWASTHY) (B.R. BASKARAN) ' /JUDICIAL MEMBER /ACCOUNTANT MEMBER /CHENNAI, A /DATED, THE 19 TH JANUARY, 2014. KRI. B , *'/C D &/ /COPY TO: 1. !( /APPELLANT 2. *+!( /RESPONDENT 3. . E/ () /CIT(A)-VI, CHENNAI-34 4. . E/ /CIT-VI, CHENNAI 5. FG *'/' /DR 6. GH% I /GF.